Impact of Agricultural Production on Economic Growth in Zimbabwe

To achieve inclusive growth, and poverty and inequality reduction, African countries should enhance labour-intensive agricultural production due to their abundance of natural resources and labour. In this paper, we examine the impact of agriculture on the economic growth of Zimbabwe using the Autor...

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Bibliographic Details
Main Authors: Simbarashe Mhaka, Raynold Runganga
Format: Article
Language:English
Published: University of Primorska 2023-12-01
Series:Managing Global Transitions
Subjects:
Online Access:https://ojs.upr.si/index.php/fm/article/view/149
Description
Summary:To achieve inclusive growth, and poverty and inequality reduction, African countries should enhance labour-intensive agricultural production due to their abundance of natural resources and labour. In this paper, we examine the impact of agriculture on the economic growth of Zimbabwe using the Autoregressive Distributed Lag (ARDL) model employing data covering the period 1970 to 2019. The results show that agricultural production has a significant positive impact on economic growth in the short run while showing no impact on economic growth in the long run.Additionally, the study confirms that inflation, government expenditure and gross fixed capital formation have a positive impact on economic growth in both the long run and short run. Although the agricultural sector plays a salient role in the early stages of economic development, it is, however, not able to maintain sustainable economic growth over a long period in Zimbabwe. Additional macro-economic policy levers are required to compliment agricultural production and promote sustainable economic growth.
ISSN:1854-6935